Understand the Opportunity
If you’re looking to consolidate all of your debt, refinancing your mortgage can be a good option. When you refinance to consolidate debt, you replace many loans with one loan and only have one monthly payment—this can save you money in the long run, especially if current rates are lower than the interest rate on the original loans.
Know the Costs
As with any loan, refinancing may include up-front expenses like closing costs, and origination fees. Refinancing to consolidate debt eases the burden of paying multiple bills, but does not eliminate your debt, so budgeting is necessary to avoid slipping into additional debt.
Consider Your Options
In addition to refinancing your current first mortgage, consolidating debt by obtaining a home equity loan or line of credit is another available option. These types of loans are secured by a second mortgage, which means a separate monthly payment, but flexible terms and rates may be beneficial for you. Talk with a PNC Mortgage loan officer to find the right solution for you.